There are people who own multiple credit cards and are enjoying all the benefits and features with ease. All this is because they know how to use them wisely. If you are planning to apply for a new credit card and thinking of owning multiple credit cards then you must know some of the major things that are associated with multiple credit cards.

Before you apply for another credit card kindly read below the advantages and disadvantages of having multiple credit cards. If you have completely understood the credit card working and are ready to have more unsecured debt then you can go ahead and apply for a new credit card. You must know that with multiple credit cards you need to pay the bills on time. Keep reading to know whether it will be a great idea to apply for multiple credit cards.

Pros of having multiple credit cards

Hereunder are the reasons why one can consider having multiple credit cards:

  • Easy to maintain credit utilization ratio: When you have multiple credit cards you have an increased credit limit thereby increasing the Credit utilization ratio. You can scatter all your expenses on each credit card so that you avoid utilizing the complete credit limit of one credit card. 
  • Improves credit score: When you use multiple credit cards for your expenses your credit score starts improving faster. This is only possible when you manage to use all credit cards wisely and adhere to timely repayment cycles. 
  • More features and benefits: Having multiple credit cards with different rewards programs helps you enjoy more features and benefits. This helps in maximizing your experience with credit cards. You can save a lot with different credit cards in different spending categories. 
  • Balance transfer feature: You get the feature of balance transfer when you have multiple credit cards. Check which credit card has low-interest rates as well as low balance transfer processing fee and a greater interest-free period so that you can take the advantage of this feature during emergencies. When you have no funds and have been left with less time period to pay one’s card dues, you can use another card to clear the outstandings in these times. 
Cons of having multiple credit cards

Given below are the reasons why you should avoid taking multiple credit cards:

  • Difficult to manage: Sometimes it can become difficult for you to manage all your credit cards. Honestly, it is difficult to manage one card and when you have multiple credit cards you can easily forget the due dates.
  • Increased debt risk: The more unsecured debt you have the more chances of falling into a debt trap. Missing the due dates of credit cards can lead to the accrual of debt. Frequently defaulting the same can create an alarming situation for you.
  • Risk of falling credit score: The more you use your credit cards carelessly the more the chances of affecting your credit score negatively. With multiple credit cards the risk of falling credit score increases. Your credibility gets harmed which can further have a negative impact on your personal loan applications or on a new credit card application. 

Additional Reading: Do’s and Don’ts To Improve Your Credit Score

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